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Question 1. Explain the different leadership styles (not theories) defined in the academic
literature and discuss what style of leadership is the most appropriate in different
environmental situations and with different categorisations of employees.
Answer 1. The leader is responsible for setting up the direction of the corporation. The
initiatives taken for the purpose of creating a favorable environment for the organization cannot
succeed until or unless the leadership is ready for it. The leadership should have the necessary
courage as well as foresight to do the right thing as it will lead to success in the long term. A
leader can play the real role in this case as he/she can convince the followers to follow the right
path for the organization. Leadership can be defined as the process of influencing the supporters/
followers and directing them towards the achievement if a common goal. The researchers in this
area have identified several different styles of leadership:
Autocratic Leadership Style: This is the classical leadership style where the leader retains
the decision making authorities and is extremely intolerant towards suggestions from
others. The leader is the sole central authority and expects the followers to follow the
instructions given out to them. Autocratic style works in those cases where an immediate
response is required and the followers are not well equipped to deal with the situations
and there is a need for greater coordination with several other departments.
Democratic Leadership Style: Also known as the participative style, here the
followers/staff members are encouraged to participate in the decision making process and
they are kept informed about the things that are going on in the organization. This style is
appreciated by the staff as the leaders trust them. It boosts up their morale and promotes
team spirit. But this style can be used only in the case when the staff is skilled enough to
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participate in the decision making process and helps in overall development of
personality of staff members. But this cannot be used in situations when time is less and
there is no space for mistakes.
Laissez Faire Leadership Style: This style of leadership is also known as free rein style.
In this case the leader gives full authority to the staff members and they formulate their
own goals, make their own decisions and try to resolve problems that crop up. This style
can be used when the staff is highly experienced and skilled as well as trustworthy. This
style should be used only in the case when the leader shall be available for timely
feedbacks. It makes the employees feel more motivated and dedicated towards the overall
goal achievement.
Transactional Leadership Style: Leaders who use this style have belief that individuals
are motivated by the rewards as well as the punishments that they expect to get in return
for the job performed. These leaders carve out clear cut job structure and reward
structure. This type of leadership style is often used in large organizations with
bureaucratic setups. It is based on reciprocal relationships.
Transformational Leadership Style: This style is based on the fundamental premise that
people tend to follow the guidelines of any individual who motivates and inspires them
and has a long term vision. These leaders develop the vision keeping in mind the needs of
others and then they create trust among their followers who tend to follow the leader for
actualization of this vision. These leaders are very committed and they make changes
happen within the inner self of followers, and also within the organization.
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